WATCH Kanamoto Co.,Ltd. (9678.T)
Industrials · Rental & Leasing Services · JPX · Japan
61
Final Score
23.8%
Margin of Safety
58
Quality Score
¥5,460
Current Price
¥185.2B
Market Cap
Key Metrics
Pe Ratio
14.86
Forward Pe
21.08
Pb Ratio
1.21
Ev Ebitda
3.39
Gross Margin
32.2%
Operating Margin
9.1%
Net Margin
6.3%
Dividend Yield
206.0%
Debt To Equity
42.40
Current Ratio
1.56
Beta
0.36
📈 Trend Charts
Revenue Trend
EPS Trend
Net Income Trend
Free Cash Flow Trend
Intrinsic Value Estimates
Low
¥5,731
Base
¥7,164
High
¥8,597
⚠️ Value Trap Flags
- 🚩 {'flag': 'DEBT_OUTPACING_INCOME', 'severity': 'MED', 'evidence': 'Net debt growth (68.5%) outpacing operating income growth (31.3%)'}
Pipeline Stage Details
Stage A — Hard Filters ✅
Pe Ratio
14.86
Eps Positive Years
4.00
Eps Lookback
4.00
Fcf Positive Years
4.00
Fcf Lookback
4.00
Debt To Equity
0.42
Current Ratio
1.56
Dilution Cagr
-0.02
Stage B — Quality Score: 58/100
Stage C — Cyclicality: MED
Normalized EPS
¥244.48
Stage F — Final Score Breakdown
| Component | Weighted Score |
|---|---|
| Valuation | 16.5 |
| Earnings Quality | 14.5 |
| Balance Sheet | 16.0 |
| Stability | 8.2 |
| Moat Proxies | 5.6 |
Top Drivers
- Modest discount: 24% margin of safety (price ¥5,460 vs intrinsic ¥7,164).
- Reasonable P/E of 14.9x — below long-run market average (~15-17x), suggesting the stock is not overpriced.
- Conservative leverage: D/E ratio of 0.42x is well within Graham's maximum of 1.0x, reducing insolvency risk.
- Strong free cash flow generation — the company converts earnings into real cash effectively, supporting dividends, buybacks, and debt reduction.
Top Risks
- ⚠️ [MED] Leverage risk: Net debt growth (68.5%) outpacing operating income growth (31.3%). Growing debt with stagnant income can lead to financial distress.
- Moderate cyclicality (Cyclical sector: Industrials) — earnings may fluctuate.
Financial History
| Year | Revenue | Gross Profit | Operating Income | Net Income | EPS |
|---|---|---|---|---|---|
| 2022 | ¥188.0B | ¥55.8B | ¥13.2B | ¥8.3B | ¥224.64 |
| 2023 | ¥197.5B | ¥56.9B | ¥12.0B | ¥6.7B | ¥185.40 |
| 2024 | ¥207.2B | ¥60.2B | ¥14.6B | ¥9.0B | ¥253.72 |
| 2025 | ¥213.3B | ¥65.1B | ¥17.4B | ¥11.0B | ¥314.15 |
Cash Flow History
| Year | Operating CF | CapEx | Free Cash Flow |
|---|---|---|---|
| 2021 | N/A | N/A | N/A |
| 2022 | ¥33.2B | ¥-5.3B | ¥27.9B |
| 2023 | ¥38.0B | ¥-5.6B | ¥32.4B |
| 2024 | ¥41.7B | ¥-2.9B | ¥38.8B |
| 2025 | ¥47.4B | ¥-4.2B | ¥43.2B |